Statement of Joseph M. Arabit Special Agent in Charge El Paso Division Drug Enforcement Administration Regarding “Violence Along the Southwest Border” Before the House Appropriations Committee Subcommittee on Commerce, Justice, Science and Related Agencies March 24, 2009 at 2:00 p.m. Capitol Building, Room Rayburn 2359 INTRODUCTION Chairman Mollohan, Ranking Member Wolf, and distinguished Members of the Committee, on behalf of Drug Enforcement Administration (DEA) Acting Administrator Michele Leonhart, I appreciate your invitation to testify today regarding violence in Mexico along the United States southwest border. The DEA has outstanding relationships with law enforcement agencies on both sides of the border. With the assistance of our counterparts, the DEA strives to coordinate investigative activity and develop intelligence in order to efficiently and effectively manage law enforcement efforts with the goal of identifying, infiltrating, and destroying rogue drug trafficking organizations. These organizations are directly responsible for the violence in Mexico. On behalf of Acting Administrator Michele Leonhart and the more than 9,000 men and women of the DEA, I am honored to have the opportunity to share these perspectives with you today. OVERVIEW Almost immediately following his inauguration as President of Mexico in December 2006, Felipe Calderon – of his own volition – initiated a comprehensive program to break the power and impunity of the drug cartels. As a direct consequence of this effort, there has been a sharp spike in murders and violent crimes in Mexico, generating significant concern by some that Mexico is on the verge of becoming a “failed state” and that this violence would spill over our Southwest border at increased levels with adverse consequences to U.S. interests. The increased level of violence that currently plagues Mexico represents, in large measure, a desperate attempt by drug traffickers to resist the sustained efforts of a very determined Mexican Administration; it is not an indication of imminent failure. Since the Calderon Administration assumed power, the Government of Mexico has made record seizures of drugs, clandestine laboratories, weapons and cash. They have arrested large numbers of defendants, including high level representatives of all of the major Mexican Cartels and, in unprecedented fashion, extradited more than 190 of these defendants to face prosecution in the U.S. They have also begun the more difficult process of reforming their institutions, transitioning from a written inquisitorial to an oral adversarial system of justice, vetting and training police, prosecutors and jailers, establishing a new organized crime tribunal and addressing corruption as never before. DEA believes the Government of Mexico has demonstrated remarkable commitment and resolve. As a result of Mexico’s efforts, together with efforts undertaken by DEA and the interagency domestically and by our partners throughout the region, Mexican drug trafficking organizations have been placed under unprecedented stress. We are mindful, however, that success against these powerful criminal adversaries is far from certain and the consequences of transnational criminals prevailing in their bloody conflict with the Calderon Administration would pose devastating consequences for the safety and security of citizens on both sides of our Southwest border. The U.S. has seized this historic opportunity to collaborate with Mexico. Through the Merida Initiative and the 1 funding provided by the U.S. Congress our Mexican counterparts have additional resources to protect the safety and security of citizens on both sides of our border. THE SOUTHWEST BORDER The Southwest Border (SWB) of the United States is the principal arrival zone for most illicit drugs smuggled into the United States, as well as the predominant staging area for the drugs’ subsequent distribution throughout the country. According to El Paso Intelligence Center (EPIC) drug seizure data, most of the cocaine, foreign source marijuana and methamphetamine, and Mexican-source heroin available in the United States is smuggled into the country across the SWB from Mexico. The SWB is particularly vulnerable to drug smuggling because of the enormous volume of people and goods legitimately crossing the border between the two countries every day. Moreover, large sections of the nearly 2,000 mile land border between Mexico and the United States are both vast and remote, and this provides additional smuggling opportunities for Mexican drug trafficking organizations (DTOs). Once at the border, Mexican traffickers use every method imaginable to smuggle drugs into this country including aircraft, backpackers, couriers, horses and mules, maritime vessels, rail, tunnels, and vehicles. In response, the DEA, in cooperation with its federal, state, local and foreign counterparts, is attacking these organizations at all levels. The disruption and dismantlement of these organizations, the denial of proceeds, and the seizure of assets significantly impacts the DTOs ability to exercise influence and to further destabilize the region. Key to DEA’s operations and success is collection and sharing of intelligence, which is made possible and enhanced through the El Paso Intelligence Center, DEA’s Special Operations Division, the Organized Crime Drug Enforcement Task Force (OCDETF) Fusion Center, DEA’s participation Intelligence Community, and daily law enforcement interaction with DEA offices along the border. In short, guided by intelligence, DEA is working diligently on both sides of the border to stem the flow of illicit drugs and assist the Government of Mexico in breaking the power and impunity of the drug cartels. THE SCOPE OF DRUG TRAFFICKING ON THE SOUTHWEST BORDER Prior to addressing Mexico’s security situation, it is important to have a clear picture of the illicit drug-trafficking industry within Mexico as it relates to the United States. No other country in the world has a greater impact on the drug situation in the United States than does Mexico. The influence of Mexico on the U.S. drug trade is truly unmatched: the result of a shared border; Mexico’s strategic location between drug-producing and drug-consuming countries; a long history of cross-border smuggling; and the existence of diversified, poly-drug, profit-minded DTO’s. Each of the four major drugs of abuse – marijuana, cocaine, heroin, and methamphetamine – are either produced in, or are transshipped through, Mexico before reaching the United States. On our side of the border an appetite for these drugs sends billions of U.S. dollars and an unknown number of weapons back to Mexico annually. Many of the smuggled weapons are used against the Mexican security forces. The single objective of those who ply the drug trade is 2 profit: for Mexican traffickers, that profit is estimated by NDIC at $8-$24 billion per year. For all of these reasons, the U.S. and Mexican governments share the responsibility to defeat the threat of drug-trafficking. Heroin - Mexico is an opium poppy-cultivating/heroin-producing country. While Mexico accounts for only about six percent of the world’s opium poppy cultivation and heroin production, it is a major supplier of heroin to abusers in the United States, particularly in regions west of the Mississippi River. It has been alarming to note that Mexican black tar and brown heroin has appeared increasingly in eastern-U.S. drug markets over the past several years. We assess with high confidence that Mexican cartels are seeking to maximize revenues from an industry that they control from production through distribution. Marijuana - Mexico is the number one foreign supplier of marijuana abused in the United States. In fact, according to a 2008 inter-agency report, marijuana is the top revenue generator for Mexican drug trafficking organizations —a cash crop that finances corruption and the carnage of violence year after year. The profits derived from marijuana trafficking – an industry with minimal overhead costs, controlled entirely by the traffickers – are used not only to finance other drug enterprises by Mexico’s poly- drug cartels, but also to pay recurring “business” expenses, purchase weapons, and bribe corrupt officials. Though the Government of Mexico has a robust eradication program, many of the military personnel traditionally assigned to eradicate marijuana and opium poppy have recently been diverted to the offensive against the cartels. Methamphetamine -Mexico is also the number one foreign supplier of methamphetamine to the United States. Although the Mexican government has made enormous strides in controlling – even banning – the importation of the methamphetamine precursor chemicals ephedrine and pseudoephedrine, Mexican methamphetamine-producing and trafficking organizations are proving to be extremely resourceful in circumventing the strict regulatory measures put in place by the Calderon Administration. Cocaine - Mexico’s importance in the cocaine trade cannot be overstated. Since the 1980s, Mexico has served as a primary transportation corridor for cocaine destined for the United States. While Mexico is not a coca-producing country and therefore cannot control the trade from beginning to end, traffickers in Mexico have managed nonetheless to exert increasing control over the trade in exchange for shouldering the greater risk inherent in transporting the cocaine and ensuring its distribution in the United States. In recent years, Mexican trafficking organizations have extended